Understanding Compensation Payments Insights

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Visit https://getisoamp.com to learn more about ISO Amp! • Revenue minus cost is how you determine the margin available on the account. Below, we will break down a few key calculations needed to understand your potential profit. • The effective rate is calculated by dividing total fees by the total processing volume. Merchants with a high volume of debit transactions may have a higher average ticket size but a lower effective rate. Conversely, high-risk merchants typically face much higher effective rates. • Your core costs will include interchange fees, card brand fees and assessments, and your Schedule A fees. Interchange and card brand fees are mandatory for every account you sign up. Schedule A usually details per-item costs and basis points and often includes monthly fees. The cost of Schedule A is an additional expense on top of the interchange and card brand fees, representing your total account cost. • After calculating the interchange, card brand fees, and your Schedule A cost, any remaining revenue is your profit. • ISO Amp enables you to input your Schedule A costs into the system to calculate potential profits at your desired price point. With our system, you can adjust pricing line by line to achieve your profit goals for each account.

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